…Says FG to Crowd-in Domestic Private Capital

…Nigeria Poised for Growth Despite Global Uncertainties

By Emma Ujah & Babajide Komolafe

As the 2025 Spring Meetings of the International Monetary Fund (IMF) and the World Bank closed yesterday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, said he would return to Nigeria to build fiscal buffers capable of withstanding anticipated external shocks.

The Minister, who led the Nigerian delegation, spoke during a closing press briefing held alongside the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, in Washington.

According to Edun, although recent global tariff hikes do not directly impact Nigeria, their indirect effect on oil prices is significant for the country’s economy.

He emphasized that the administration of President Bola Tinubu would intensify efforts to boost food production for food security and encourage private sector investment in infrastructure to drive economic growth.

His words: “We’ve had a very interesting and busy week at the World Bank/IMF Spring Meetings.

“We met at a time of global uncertainty, structural shifts, rising trade and geopolitical tensions, elevated interest rates, and high debt levels, particularly among developing countries. These challenges have impacted economies heavily, especially in sub-Saharan Africa.

“This week, ministers of finance and governors of central banks globally reviewed the global policy agenda set by the IMF last October, along with updates on the World Bank Group’s evolution process.

“The recent tariff hikes are affecting real wages globally. In Nigeria’s case, while there is no strong direct transmission of the negative effects, the resultant fall in oil prices impacts our fiscal estimates.

“The consensus from various fora is that domestic policy must be the first line of defense. We must safeguard fiscal sustainability, build savings, and strengthen our capacity to absorb external shocks. This requires consistent, recalibrated policies, underpinned by transparent and reliable data.”

Edun noted that President Tinubu’s “Renewed Hope Agenda” is already aligned with the World Bank’s focus on “Jobs: The Pathway to Prosperity,” through initiatives in agriculture, infrastructure, social security, and reforms in the oil sector.

He added: “In a nutshell, we have had encouraging conversations. Both at the IMF and World Bank, it was acknowledged that Nigeria is on the right path in terms of monetary and fiscal policies.

“This is corroborated by Fitch Ratings’ recent upgrade of Nigeria’s credit rating from B- to B, with a positive outlook.

“Despite global uncertainties, Nigeria remains poised for economic growth and job creation.”

On Budget Implementation Amid Lower Oil Prices

Addressing concerns over budget implementation amid lower oil revenues, Edun explained:

“Budgets are statements of intent and must be recalibrated to reflect current realities and available resources. That is exactly what is being done.

“The Economic Management Team has formed a sub-committee, comprising key ministries and agencies, to analyze and model various scenarios. Their findings will be presented to the Economic Management Team and subsequently to the Federal Executive Council for further decisions.

“It’s important to note that while oil is a primary source of foreign exchange and revenue, the focus is also on increasing production to compensate for lower prices. The new leadership at NNPC has been tasked with improving production and operational efficiency.

“Additionally, we have launched a robust revenue assurance initiative to automate and digitize revenue-earning agencies, ensuring that payments are fully captured by the government.”

Shift from External Borrowing to Domestic Revenue Mobilization

The Minister revealed a major policy shift: “Initially, there was a focus on concessional funding from international institutions and bilateral partners. We also accessed commercial funding through Eurobonds and diaspora bonds. However, that phase has run its course.

“The focus now is on mobilizing domestic revenue and crowding in private sector investments.

“The administration’s philosophy is to stabilize the economy and create an enabling environment for private sector-led investments across infrastructure, digital economy, toll roads, and other revenue-generating sectors.

“The 2025 budget even includes a line for privatization, reflecting the government’s commitment to open the economy to private participation, thus addressing any revenue shortfalls that may arise.”